MOSCOW (MRC) -- Sasol Limited has announced the final approval of an USD8.1 billion ethane cracker and derivatives complex at its existing site in Lake Charles, Louisiana, reported the company on its site.
"Sasol’s decision to move forward with this project is a defining moment in our company’s history, and an important milestone in the execution of our growth strategy," said David Constable, President and Chief Executive Officer, Sasol Limited. "Once commissioned, this world-scale petrochemicals complex will roughly triple our chemical production capacity in the United States, enabling Sasol to further strengthen its position in a growing global chemicals market. The US Gulf Coast’s robust infrastructure for transporting and storing abundant, low-cost ethane was a key driver in our decision to invest in America."
At the heart of the project is an ethane cracker that will produce 1.5 million tons of ethylene annually, benefitting from significant economies of scale. The complex also includes six chemical manufacturing plants. Approximately 90% of the cracker’s ethylene output will be converted into a diverse slate of commodity and high-margin specialty chemicals for markets in which Sasol has a strong position, underpinned by collaborative customer relationships.
Sasol has selected Fluor Technip Integrated, a joint venture of two world-class firms, as the primary engineering, procurement, and construction management contractor for this project. Sasol’s project management team is also supported by WorleyParsons, who bring with them significant mega-project experience.
An additional USD800 million will be invested in infrastructure and utility improvements, as well as land acquisition, to establish the Lake Charles location as an integrated, multi-asset site that will enable growth for decades to come.
Sasol is well-advanced in raising the funds required for construction and will utilise a variety of international US dollar-based sources. Site preparation is underway, and the company expects that the facility will achieve beneficial operation in 2018.
As MRC informed previously, in August 2014, KBR was awarded a contract from Ineos and Sasol to provide engineering, procurement, and construction (EPC) services for a new high-density polyethylene (HDPE) facility to be located at Ineos' Battleground complex in La Porte, Texas. The new facility is designed to produce 470,000 tpy of bimodal HDPE using Innovene S process technology licensed from INEOS Technologies. The new, single-train facility will include new polymerization, pelletization, and railcar load-out facilities, plus upgrades to existing utilities and infrastructure.
Sasol Limited is an integrated energy and chemical company based in Johannesburg, South Africa. It develops and commercialises technologies, including synthetic fuels technologies, and produces different liquid fuels, chemicals and electricity.
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